An ERP (ENTERPRISE RESOURCE COMPANY) is a software that consolidates every operation process that takes place inside a company. Based on one single data base, a company may consolidate all its process gaining efficiency and also having communicated all its different areas. There is no doubt about its effectiveness but the question is if an ERP must be developed to one company in particular o can a standard ERP be sold and have the company adjust to it?
In my opinion, it will depend on the nature of each business. For instance if we take as an example the food industry, there are some big companies in the fast food industry that worked with ALOHA, a standard ERP, for a long time and recently have decided to switch for another and new standard ERP. Based on my experience in the fast food industry and after having worked with both, an specific and personalized software is sometimes better because in the fast food industry companies use for a long time the same ingredients and receipes and their menu does not change a lot. Additionally, fast food restaurants operate under the same scheme under a proven efficient method so that implies that administrative and operational process do not change frequently. After worked with Aloha to operate a hamburger chain (Wendys) and after working with a personalized software (Subway), if I could choose among those options I would definitely take the alternative of a personalized software that might provide you more insight, detailed and useful information. Daily operations for fast food is very predictive and schedules, inventories, purchased, labor and receipes are constant.
On the other hand, if we talk about an upscale restaurant where a menu changes every day, and also the operational process are changed every day according to each customer profile, then I would choose a standard ERP, that might contain general information and which will not be to strict. I believed standard ERP are more receptive to gather different information while personalized softwares are less receptive to changes in information.
A disadvantage of having a personalized software developed is that it becomes more expensive in the short term to develop it and in the long term it is more difficult to change to another software in case there is a need. Additionally, in case there is a flaw, few people know how to handle the problems. On the other hand, standard ERP´s have a support team that might provide service at any moment.
In conclusion, I am convinced that a software or an ERP are strategic for every company, and weather they are personalized or not will depend on the nature of each business.
lunes, 14 de junio de 2010
The Dell Hell Experience
After realizing that a negative opinion on a blog could have such an impact on their sales, Dell started to care and to consider getting a communication strategy to face media and internet crisis. Before this happened, as Michael Dell said, they did not care much about the power of blogs. He recognized they screw up and defined his company as a learning organization that also learns from mistakes. http://www.businessweek.com/bwdaily/dnflash/content/oct2007/db20071017_277576.htm?chan=top+news_top+news+index_top+story
After this incident, Dell launched this policy of being in constant communication with their customer and they are trying to make people aware that they will have all kind of support, they already met with Jeff Jarvis with the objective to have him tell the people how they have been trying to solve their previous mistake. They are starting to launch a campaign called “The end of Dell Hell?”.
It is clear that it took too much time to Dell to take care of this matter, I believe that taking in consideration the speed of communication at this point, companies have to be aware about creating a brand position along with their customers and not only by themselves. A negative opinion can destroy every launch campaign of a company. Another learning we get off this crisis is that every company has to have a crisis strategy towards media communication. It is impossible to control and to decide what opinions are load on the net so it is important to have a fast reaction when this kind of situations arrive.
In my opinion Dell did not know how to react, it would have been important to publicly recognize this mistake and mishandle of the situation and explaining this specific situation, offering in that moment a cash return to all the unhappy customers plus a bonus. Like that they would have prevented this crisis to keep growing. On the contrary they chose to ignore for a while Jeff Jarvis blog and by the moment they tried to face the crisis it had already become a wild media issue, and still there weren´t Dell public statements.
Once there is a complaint in any business, there has to be a direct communication with the customer and if it necessarily it is important to make these communications publics so media knows the company is taking care. We have to be aware that any negative opinion or complaint is a potential threat and have to be addressed by the company, a company cannot afford to distinguished weather it is an important client or not. It is their responsibility to provide a good service to their customer.
The Dell Hell experience is such an important history fact that right now is been used as a precedent and as an argument in legal trials. The New York Prosecutor is using it as an argument to prove and press charges against for dishonesty by offering services they can´t provide. This could be an enormous precedent if Dell looses this lawsuit. http://www.nyagdell.com/
After this incident, Dell launched this policy of being in constant communication with their customer and they are trying to make people aware that they will have all kind of support, they already met with Jeff Jarvis with the objective to have him tell the people how they have been trying to solve their previous mistake. They are starting to launch a campaign called “The end of Dell Hell?”.
It is clear that it took too much time to Dell to take care of this matter, I believe that taking in consideration the speed of communication at this point, companies have to be aware about creating a brand position along with their customers and not only by themselves. A negative opinion can destroy every launch campaign of a company. Another learning we get off this crisis is that every company has to have a crisis strategy towards media communication. It is impossible to control and to decide what opinions are load on the net so it is important to have a fast reaction when this kind of situations arrive.
In my opinion Dell did not know how to react, it would have been important to publicly recognize this mistake and mishandle of the situation and explaining this specific situation, offering in that moment a cash return to all the unhappy customers plus a bonus. Like that they would have prevented this crisis to keep growing. On the contrary they chose to ignore for a while Jeff Jarvis blog and by the moment they tried to face the crisis it had already become a wild media issue, and still there weren´t Dell public statements.
Once there is a complaint in any business, there has to be a direct communication with the customer and if it necessarily it is important to make these communications publics so media knows the company is taking care. We have to be aware that any negative opinion or complaint is a potential threat and have to be addressed by the company, a company cannot afford to distinguished weather it is an important client or not. It is their responsibility to provide a good service to their customer.
The Dell Hell experience is such an important history fact that right now is been used as a precedent and as an argument in legal trials. The New York Prosecutor is using it as an argument to prove and press charges against for dishonesty by offering services they can´t provide. This could be an enormous precedent if Dell looses this lawsuit. http://www.nyagdell.com/
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